Untold Tales of Indian History: Jamshedpur and the Impact of Labor Movements

In the early 20th century, the city of Jamshedpur stood at the crossroads of labor relations and industrial development in India. This essay delves into lesser-known facts about the journey of Jamshedpur, depicting a significant labor movement led by prominent figures like Netaji Subhas Chandra Bose and C.F. Andrews. This period marked a pivotal moment in the relationship between labor and industry in India.

From Village to Industrial City

During my term at IIM-A, I undertook a comprehensive study of the history of business, culminating in an essay on the transformation of Jamshedpur from a typical Indian village to the country's first planned industrial city. The journey was not without its tumultuous moments, particularly during the intense labor strikes that shook the Tata Iron and Steel Company (TISCO) in the 1920s.

The Day of Gandhiji’s Visit to Jamshedpur

Mid-1920s witnessed a challenging period for Tata Steel workers who faced harsh conditions and demanded better wages and working conditions. In 1925, Netaji Subhas Chandra Bose and C.F. Andrews, President of the Jamshedpur Labor Association (JLA), along with Deenabandhu (a title given to Andrews), persuaded Mahatma Gandhi to visit Jamshedpur.

Gandhiji's message to the workers was clear and inspiring: “It was my ambition to see one of the greatest, if not the greatest, Indian enterprises in India and study the conditions of work here. But none of my activities is one-sided, and as my religion begins and ends with truth and non-violence, my identification with labor does not conflict with my friendship with labor... And believe me, throughout my public service of 35 years, though I have been obliged to range myself seemingly against capital, capitalists have, in the end, regarded me as their true friend. And in all humility, I may say that I have come here also as a friend of the capitalists – a friend of the Tatas.”

During this visit, Mahatma Gandhi felt a sense of "Miniature Swaraj" (Pseudo Swaraj), a period of relative peace and harmony where both parties worked towards a common understanding.

Strikes and the Role of Subhas Chandra Bose

Despite the initial success and relative peace, the workers went on strike in 1928 over basic wages and increments, led by Manick Homi. The management at TISCO refused to negotiate, and the JLA was rendered ineffective. Recognizing the importance of the situation, Manick Homi requested Subhas Chandra Bose’s intervention, as Bose was known for his friends in both labor and capital sectors.

Bose, with his prior experience in working with C.F. Andrews, took up the cause. He reconciled the interests of the workers and the management, influencing the company to negotiate with the workers. The terms were promising: no strike pay, advanced one month's wages, and an increase in the bonus scheme. This intervention marked a significant turning point in the labor-management relations in Jamshedpur.

Leadership of Subhas Chandra Bose

Subhas Chandra Bose continued to serve as the President of the Jamshedpur Labor Association for nine years until 1936-37. His leadership and dedication were reflected in a letter to M.D. Nowroji B. Saklatvala, dated 1928, which emphasized the importance of Indianization within the company:

I feel very sincerely that the future of this industry depends largely on Indianization. This is a point which foreigners however good they otherwise may be cannot sufficiently appreciate. I have no doubt that if you go ahead with your policy of Indianization you will be able to ingratiate yourself with your Indian employees, your countrymen as well as with public leaders of all shades of opinion.

This letter was of utmost significance, leading to the recruitment of more Indians into key positions within the company. The Tatas took his vision of Indianization seriously, which also resulted in historic agreements, including the introduction of profit-sharing bonuses for TISCO employees.

The first profit-sharing bonus for Tata Steel employees was introduced as part of this historic agreement, setting a precedent that would later become a legal requirement in independent India only in 1965 with the The Payment of Bonus Act 1965. Netaji also pushed for the inclusion of maternity benefits in company schemes, contributing significantly to economic reforms and human resource policies.

Conclusion

The story of Jamshedpur and the remarkable labor movements led by figures like Netaji Subhash Chandra Bose and C.F. Andrews is a testament to the power of leadership and unity in bridging the gap between labor and industry. Their efforts laid the foundation for a more just and equitable industrial landscape in India, with lasting impacts that continue to resonate today.